[Report Overview](index=1&type=section&id=Report%20Overview) [Filing Information](index=1&type=section&id=Filing%20Information) This report is NEOGENOMICS, INC.'s quarterly report (Form 10-Q) for the period ended June 30, 2025, incorporated in Nevada, trading under the ticker NEO on Nasdaq, classified as a large accelerated filer, and having submitted all required reports and interactive data files - Company Name: **NEOGENOMICS, INC.** (Registrant)[2](index=2&type=chunk) - Report Type: Quarterly Report (Form 10-Q)[2](index=2&type=chunk) - Reporting Period: Ended June 30, 2025[2](index=2&type=chunk) - Ticker Symbol: **NEO**, listed on the Nasdaq Stock Market[3](index=3&type=chunk) - Company Classification: Large accelerated filer[4](index=4&type=chunk) - As of July 25, 2025, **129,178,622** shares of common stock were outstanding[4](index=4&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements regarding the company's strategy, future operations, financial condition, revenue, reimbursement levels, Pathline acquisition synergies, costs, capital expenditures, prospects, and management objectives, which involve known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, with no obligation for the company to update any such statements - Forward-looking statements cover the company's strategy, future operations, financial condition, revenue, reimbursement levels, Pathline acquisition synergies, anticipated costs and capital expenditures, prospects, and management plans and objectives[7](index=7&type=chunk) - These statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from forward-looking statements[7](index=7&type=chunk) - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the report date[7](index=7&type=chunk) [Glossary](index=4&type=section&id=Glossary) This section provides definitions for abbreviations, acronyms, and terms used in this quarterly report to aid reader comprehension of the content - Definitions are provided for key abbreviations and terms used in the report, such as ACA (Affordable Care Act), ACLA (American Clinical Laboratory Association), FDA (U.S. Food and Drug Administration), GAAP (U.S. Generally Accepted Accounting Principles), and NGS (Next-Generation Sequencing)[8](index=8&type=chunk) [PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with related notes, providing the financial position and operating results as of June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$1,393,950 thousand**, a decrease from **$1,638,038 thousand** on December 31, 2024, driven by a significant reduction in cash and cash equivalents and a notable decrease in total liabilities primarily due to the repayment of convertible senior notes Condensed Consolidated Balance Sheets (Thousands of Dollars) | Metric (Thousands of Dollars) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | 154,723 | 367,012 | | Marketable securities | 8,962 | 19,832 | | Accounts receivable, net | 153,125 | 150,540 | | Inventories | 34,171 | 26,748 | | Assets held for sale | 8,956 | — | | Total current assets | 392,553 | 596,019 | | Property and equipment, net | 85,462 | 94,103 | | Intangible assets, net | 301,795 | 339,681 | | Goodwill | 524,143 | 522,766 | | Total assets | 1,393,950 | 1,638,038 | | **Liabilities and Stockholders' Equity** | | | | Accounts payable | 27,492 | 21,607 | | Accrued compensation | 48,557 | 62,443 | | Current convertible senior notes, net | — | 200,777 | | Liabilities held for sale | 456 | — | | Total current liabilities | 100,120 | 301,241 | | Long-term convertible senior notes, net | 341,095 | 340,335 | | Total liabilities | 539,910 | 735,699 | | Total stockholders' equity | 854,040 | 902,339 | | Total liabilities and stockholders' equity | 1,393,950 | 1,638,038 | - As of June 30, 2025, cash and cash equivalents were **$154,723 thousand**, a significant decrease from **$367,012 thousand** on December 31, 2024[10](index=10&type=chunk) - Total current liabilities decreased from **$301,241 thousand** on December 31, 2024, to **$100,120 thousand** on June 30, 2025, primarily due to the repayment of 2025 convertible senior notes[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three and six months ended June 30, 2025, the company experienced revenue growth, but net loss expanded year-over-year due to a significant increase in operating expenses, particularly impairment charges Condensed Consolidated Statements of Operations (Thousands of Dollars) | Metric (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | 181,330 | 164,502 | 349,365 | 320,742 | | Cost of revenue | 104,072 | 92,008 | 198,861 | 182,779 | | Gross profit | 77,258 | 72,494 | 150,504 | 137,963 | | Total operating expenses | 124,886 | 94,435 | 225,957 | 190,471 | | Operating loss | (47,628) | (21,941) | (75,453) | (52,508) | | Net loss | (45,092) | (18,642) | (71,015) | (45,703) | | Basic net loss per share | (0.35) | (0.15) | (0.56) | (0.36) | | Diluted net loss per share | (0.35) | (0.15) | (0.56) | (0.36) | - For the three months ended June 30, 2025, net revenue increased by **10.2%** to **$181,330 thousand** year-over-year, but net loss expanded from **$18,642 thousand** to **$45,092 thousand**, primarily impacted by **$20,041 thousand** in impairment charges[13](index=13&type=chunk) - For the six months ended June 30, 2025, net revenue increased by **8.9%** to **$349,365 thousand**, and net loss expanded from **$45,703 thousand** to **$71,015 thousand**, also significantly impacted by impairment charges[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) For the three and six months ended June 30, 2025, comprehensive loss expanded to **$45,007 thousand** and **$70,780 thousand**, respectively, compared to the prior year, primarily reflecting the increased net loss, partially offset by unrealized gains on marketable securities Condensed Consolidated Statements of Comprehensive Loss (Thousands of Dollars) | Metric (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | (45,092) | (18,642) | (71,015) | (45,703) | | Other comprehensive income (loss): | | | | | | Unrealized gain on marketable securities, net | 85 | 308 | 235 | 652 | | Comprehensive loss | (45,007) | (18,334) | (70,780) | (45,051) | - For the three months ended June 30, 2025, comprehensive loss was **$45,007 thousand**, compared to **$18,334 thousand** in the prior year period[16](index=16&type=chunk) - For the six months ended June 30, 2025, comprehensive loss was **$70,780 thousand**, compared to **$45,051 thousand** in the prior year period[16](index=16&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) As of June 30, 2025, total stockholders' equity was **$854,040 thousand**, a decrease from **$902,339 thousand** on December 31, 2024, primarily due to the net loss during the period, partially offset by stock issuances under equity incentive plans and stock-based compensation expense Condensed Consolidated Statements of Stockholders' Equity (Thousands of Dollars) | Metric (Thousands of Dollars) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Total stockholders' equity | 854,040 | 902,339 | | Accumulated deficit | (396,796) | (325,781) | | Additional paid-in capital | 1,250,679 | 1,228,198 | | Accumulated other comprehensive income (loss) | 29 | (206) | - As of June 30, 2025, total stockholders' equity was **$854,040 thousand**, a decrease of **$48,299 thousand** from December 31, 2024[18](index=18&type=chunk) - Accumulated deficit increased from **$325,781 thousand** on December 31, 2024, to **$396,796 thousand** on June 30, 2025, reflecting the net loss during the reporting period[18](index=18&type=chunk) - Additional paid-in capital increased, primarily due to employee stock purchase plan (ESPP) and stock option issuances, and stock-based compensation expense[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash outflows from operating activities decreased, cash outflows from investing activities increased, and cash outflows from financing activities significantly increased, primarily due to the repayment of **$201.3 million** in convertible debt, leading to a notable decrease in cash and cash equivalents at period-end Condensed Consolidated Statements of Cash Flows (Thousands of Dollars) | Metric (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | (4,997) | (12,023) | | Net cash provided by (used in) investing activities | (5,754) | 21,838 | | Net cash provided by (used in) financing activities | (201,484) | 2,782 | | Net change in cash and cash equivalents | (212,289) | 12,597 | | Cash and cash equivalents at end of period | 154,723 | 355,085 | - Cash outflow from operating activities decreased from **$12,023 thousand** in the prior year period to **$4,997 thousand** in the current period[22](index=22&type=chunk) - Cash flow from investing activities shifted from an inflow of **$21,838 thousand** in the prior year period to an outflow of **$5,754 thousand** in the current period, primarily due to decreased proceeds from marketable securities maturities and the Pathline acquisition[22](index=22&type=chunk) - Cash outflow from financing activities was **$201,484 thousand**, compared to an inflow of **$2,782 thousand** in the prior year period, primarily due to the repayment of **$201.3 million** of 2025 convertible senior notes[22](index=22&type=chunk) [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes to the company's consolidated financial statements, covering key information such as the nature of business, significant accounting policies, acquisitions and disposals, fair value measurements, goodwill and intangible assets, debt, stock-based compensation, revenue recognition, restructuring, income taxes, net loss per share, and commitments and contingencies [Note 1. Nature of the Business](index=11&type=section&id=Note%201.%20Nature%20of%20the%20Business) NeoGenomics, Inc. and its subsidiaries provide a broad range of oncology diagnostic testing and consulting services, including technical laboratory services and professional interpretation of laboratory test results by specialized pathologists and oncologists, operating a network of cancer-focused laboratories in the U.S. and U.K. - The company provides oncology diagnostic testing and consulting services, including technical laboratory services and professional interpretations[25](index=25&type=chunk) - The company operates a network of cancer testing laboratories in the U.S. and U.K.[25](index=25&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=11&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the significant accounting policies followed in preparing the unaudited condensed consolidated financial statements, including the GAAP basis of presentation, consistency with annual report policies, use of estimates, classification of assets held for sale, and recognition of self-insurance liabilities, also discussing recent accounting standard updates pending adoption - Financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), with all intercompany transactions and balances eliminated[26](index=26&type=chunk) - Management is required to make estimates, judgments, and assumptions when preparing financial statements, which may differ from actual results[30](index=30&type=chunk) - The company became self-insured for employee medical benefits starting January 2025, recording **$1.5 million** in self-insurance liabilities as of June 30, 2025[32](index=32&type=chunk) - The company combined its two primary reportable segments (Clinical Services and Advanced Diagnostics) into a single segment in the fourth quarter of 2024[34](index=34&type=chunk) - FASB issued ASU No. 2024-03 (Expense Disaggregation Disclosures) and ASU No. 2023-09 (Improvements to Income Tax Disclosures), and the company is evaluating their impact on financial statements[36](index=36&type=chunk)[37](index=37&type=chunk) [Note 3. Acquisitions and Disposals](index=12&type=section&id=Note%203.%20Acquisitions%20and%20Disposals) On April 4, 2025, the company completed the acquisition of Pathline LLC for a total purchase consideration of **$8.275 million** to expand its presence in the Northeast, generating **$4.8 million** in goodwill; additionally, the company plans to sell its wholly-owned subsidiary Trapelo Health, LLC, recognizing an **$8.2 million** impairment loss, including **$3.5 million** in goodwill and **$4.7 million** in developed technology - On April 4, 2025, the company acquired Pathline LLC for a total purchase consideration of **$8.275 million** to expand its business and capabilities in the Northeast region[38](index=38&type=chunk)[41](index=41&type=chunk) - The Pathline acquisition generated **$4.8 million** in goodwill, primarily attributable to business synergies, increased market penetration, and expanded service capabilities[42](index=42&type=chunk) - Pathline contributed approximately **$4.7 million** in revenue and **$2.7 million** in net loss during the second quarter of 2025[45](index=45&type=chunk) - The company plans to sell its wholly-owned subsidiary Trapelo Health, LLC, and has classified its assets and liabilities as held for sale[46](index=46&type=chunk)[48](index=48&type=chunk) - Due to the planned sale of Trapelo, the company recognized an **$8.2 million** impairment loss, comprising **$3.5 million** in goodwill and **$4.7 million** in developed technology[49](index=49&type=chunk) [Note 4. Fair Value Measurements](index=14&type=section&id=Note%204.%20Fair%20Value%20Measurements) This note explains how the company measures the fair value of financial assets and liabilities based on a fair value hierarchy (Level 1, Level 2, Level 3); as of June 30, 2025, the company's cash equivalents and available-for-sale marketable securities, totaling **$159,075 thousand**, are primarily measured at Level 1 and Level 2 - Fair value hierarchy is categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[53](index=53&type=chunk)[54](index=54&type=chunk) Fair Value Measurements (Thousands of Dollars) | (Thousands of Dollars) | Level 1 | Level 2 | Level 3 | Total | | :--------------------- | :---------- | :---------- | :------ | :---------- | | **June 30, 2025** | | | | | | Cash equivalents: Money market funds | 150,113 | — | — | 150,113 | | Marketable securities: Municipal bonds | 5,980 | — | — | 5,980 | | Marketable securities: Corporate bonds | — | 2,982 | — | 2,982 | | **Total** | **156,093** | **2,982** | **—** | **159,075** | | **December 31, 2024** | | | | | | Cash equivalents: Money market funds | 364,815 | — | — | 364,815 | | Marketable securities: Municipal bonds | 9,436 | — | — | 9,436 | | Marketable securities: Corporate bonds | — | 10,396 | — | 10,396 | | **Total** | **374,251** | **10,396** | **—** | **384,647** | - As of June 30, 2025, the company's cash equivalents and available-for-sale marketable securities totaled **$159,075 thousand**, primarily measured at Level 1 and Level 2[63](index=63&type=chunk) [Note 5. Goodwill and Intangible Assets](index=16&type=section&id=Note%205.%20Goodwill%20and%20Intangible%20Assets) As of June 30, 2025, total goodwill was **$524,143 thousand**, a slight increase from December 31, 2024, primarily due to **$4.8 million** from the Pathline acquisition, offset by **$3.5 million** in goodwill impairment related to the Trapelo disposal; net intangible assets were **$301,795 thousand**, including **$16.1 million** in impairment losses recognized from the termination of the InVisionFirst®-Lung product portfolio and the Trapelo disposal Goodwill (Thousands of Dollars) | Metric (Thousands of Dollars) | December 31, 2024 | Goodwill from acquisitions | Impairment charges | June 30, 2025 | | :---------------------------- | :---------------- | :------------------------- | :----------------- | :------------ | | Goodwill | 522,766 | 4,840 | (3,463) | 524,143 | - The Pathline acquisition generated **$4.8 million** in goodwill[66](index=66&type=chunk) - Due to the planned disposal of Trapelo, the company recognized a goodwill impairment loss of **$3.5 million**[66](index=66&type=chunk) Intangible Assets (Thousands of Dollars) | Intangible Assets (Thousands of Dollars) | Amortization Period (Years) | Cost | Accumulated Amortization | Net | | :--------------------------------------- | :-------------------------- | :-------- | :----------------------- | :-------- | | Customer relationships | 7 - 15 | 144,301 | 80,410 | 63,891 | | Developed technology | 10 - 15 | 276,825 | 74,487 | 202,338 | | Trademarks | 15 | 30,261 | 8,142 | 22,119 | | Trademarks - indefinite life | — | 13,447 | — | 13,447 | | **Total** | | **464,834** | **163,039** | **301,795** | - The company recognized **$10.5 million** in developed technology losses and **$0.9 million** in trademark losses due to the termination of the InVisionFirst®-Lung product portfolio, and **$4.7 million** in developed technology losses due to the Trapelo disposal[68](index=68&type=chunk)[71](index=71&type=chunk) [Note 6. Debt](index=18&type=section&id=Note%206.%20Debt) This note details the company's convertible senior notes; the 2028 Convertible Notes carry a **0.25%** coupon rate, with a fair value of **$293.3 million** and a net carrying value of **$341.1 million** as of June 30, 2025, while the 2025 Convertible Notes were repaid on May 1, 2025, with a principal of **$201.3 million** - The 2028 Convertible Senior Notes were issued on January 11, 2021, totaling **$345.0 million**, with a **0.25%** coupon rate and maturity on January 15, 2028[72](index=72&type=chunk) - As of June 30, 2025, the estimated fair value (Level 2) of the 2028 Convertible Senior Notes was **$293.3 million**, with a net carrying value of **$341.1 million**[75](index=75&type=chunk) - The 2025 Convertible Senior Notes were repaid on May 1, 2025, with a principal of **$201.3 million** and interest of **$1.3 million**[78](index=78&type=chunk) [Note 7. Stock-Based Compensation](index=19&type=section&id=Note%207.%20Stock-Based%20Compensation) For the six months ended June 30, 2025, the company recognized **$22,968 thousand** in stock-based compensation expense, an increase from the prior year; this note details stock option, restricted stock, and performance share unit (PSU) activity, discloses unrecognized stock-based compensation expense and its amortization period, and reveals **$2.6 million** in additional stock-based compensation expense from accelerated vesting due to executive promotions and departures Stock-Based Compensation Expense (Thousands of Dollars) | Stock-Based Compensation Expense (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | 302 | 358 | 718 | 753 | | General and administrative expenses | 10,408 | 7,493 | 19,190 | 14,156 | | Research and development expenses | 675 | 237 | 1,272 | 408 | | Sales and marketing expenses | 830 | 753 | 1,788 | 1,298 | | **Total stock-based compensation expense** | **12,215** | **8,841** | **22,968** | **16,615** | - As of June 30, 2025, unrecognized stock-based compensation expense related to stock options was approximately **$19.4 million**, to be recognized over approximately **1.6 years**[83](index=83&type=chunk) - As of June 30, 2025, unrecognized stock-based compensation expense related to restricted stock was approximately **$22.5 million**, to be recognized over approximately **1.4 years**[84](index=84&type=chunk) - As of June 30, 2025, unrecognized stock-based compensation expense related to non-vested PSUs was approximately **$5.5 million**, to be recognized over approximately **1.4 years**[86](index=86&type=chunk) - In the second quarter of 2025, **$2.6 million** in stock-based compensation expense was recognized due to accelerated vesting from executive promotions and departures[87](index=87&type=chunk) [Note 8. Revenue Recognition](index=21&type=section&id=Note%208.%20Revenue%20Recognition) The company primarily recognizes revenue from oncology diagnostic testing and consulting services, pharmaceutical development services, and oncology data solutions; clinical service revenue is recognized upon service completion and delivery of results to physicians, pharmaceutical development service revenue is typically recognized per unit of service or over time, and oncology data solution revenue is recognized upon data delivery or over time, with this note also providing a breakdown of revenue by customer type - Clinical service revenue is recognized when services are completed and results are delivered to physicians[90](index=90&type=chunk) - Pharmaceutical development service revenue is typically recognized per unit of service or over time[91](index=91&type=chunk) - Oncology data solution revenue is recognized upon delivery for retrospective data or over time for prospective data[92](index=92&type=chunk) Net Revenue by Category (Thousands of Dollars) | Net Revenue by Category (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Direct bill to clients | 131,157 | 118,305 | 253,195 | 230,493 | | Commercial insurance | 28,766 | 24,843 | 53,623 | 48,447 | | Medicare and other government | 21,387 | 21,197 | 42,488 | 41,566 | | Patient pay | 20 | 157 | 59 | 236 | | **Total net revenue** | **181,330** | **164,502** | **349,365** | **320,742** | [Note 9. Restructuring](index=22&type=section&id=Note%209.%20Restructuring) The company completed a restructuring plan in 2024 aimed at improving execution and organizational efficiency; for the three and six months ended June 30, 2025, no restructuring charges were incurred, compared to **$1.5 million** and **$3.9 million** in the respective prior year periods - The company completed a restructuring plan in 2024, aimed at improving execution and organizational efficiency[99](index=99&type=chunk)[100](index=100&type=chunk) - For the three and six months ended June 30, 2025, the company incurred no restructuring charges[100](index=100&type=chunk) - As of December 31, 2024, current liabilities related to the company's restructuring plan were **$0.9 million**, becoming immaterial by June 30, 2025[101](index=101&type=chunk) [Note 10. Income Taxes](index=22&type=section&id=Note%2010.%20Income%20Taxes) The company estimates its annual effective tax rate based on projected pre-tax results; as of June 30, 2025, both U.S. and U.K. operations were in a three-year cumulative loss position, with U.S. operations incurring tax expense due to valuation allowances, while U.K. operations generated a tax benefit from deferred tax liability reversals related to intangible asset impairment losses, exceeding U.S. tax expense; additionally, the U.S. 'One Big Beautiful Bill Act' signed on July 4, 2025, is not expected to materially impact the company's financial statements - As of June 30, 2025, the company's U.S. and U.K. operations were both in a three-year cumulative loss position[104](index=104&type=chunk)[105](index=105&type=chunk) - U.S. operations incurred tax expense due to valuation allowances against deferred tax assets[104](index=104&type=chunk) - U.K. operations generated a tax benefit from deferred tax liability reversals related to intangible asset impairment losses, which exceeded the U.S. tax expense[108](index=108&type=chunk) - The 'One Big Beautiful Bill Act' signed on July 4, 2025, is not expected to materially impact the company's financial statements[109](index=109&type=chunk) [Note 11. Net Loss Per Share](index=23&type=section&id=Note%2011.%20Net%20Loss%20Per%20Share) For the three and six months ended June 30, 2025, basic and diluted net loss per share were **$0.35** and **$0.56**, respectively, an expansion from the prior year; due to the company's net loss position, all potentially dilutive shares, including stock options, restricted stock, 2025 and 2028 convertible notes, and PSUs, were excluded from diluted net loss per share calculations as they were anti-dilutive Net Loss Per Share (Thousands of Dollars, except per share data) | Metric (Thousands of Dollars, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | (45,092) | (18,642) | (71,015) | (45,703) | | Basic weighted-average common shares outstanding | 127,949 | 126,405 | 127,664 | 126,257 | | Diluted weighted-average common shares outstanding | 127,949 | 126,405 | 127,664 | 126,257 | | Basic net loss per share | (0.35) | (0.15) | (0.56) | (0.36) | | Diluted net loss per share | (0.35) | (0.15) | (0.56) | (0.36) | - Due to the company's net loss position, potentially dilutive shares such as stock options, restricted stock, 2025 and 2028 convertible notes, and PSUs were excluded from diluted net loss per share calculations as they were anti-dilutive[111](index=111&type=chunk) [Note 12. Commitments and Contingencies](index=24&type=section&id=Note%2012.%20Commitments%20and%20Contingencies) The company faces multiple legal proceedings and regulatory investigations, including ongoing patent infringement litigation by Natera involving InVisionFirst®-Lung and RaDaR® tests, where RaDaR® 1.0 was settled with a permanent injunction but RaDaR® 1.1 litigation is pending; additionally, the company faces shareholder class action and derivative lawsuits, and regulatory investigations related to federal healthcare law compliance, for which **$11.2 million** has been accrued - Natera, Inc. filed patent infringement lawsuits against Inivata Limited and its subsidiaries, involving InVisionFirst®-Lung and RaDaR® tests[115](index=115&type=chunk) - A partial settlement and permanent injunction were issued for the RaDaR® 1.0 test, but litigation regarding RaDaR® 1.1 and the '454 and '596 patents is expected to proceed to trial in October 2025[116](index=116&type=chunk) - The company faces a shareholder class action lawsuit (Goldenberg Matter) and multiple shareholder derivative lawsuits alleging material misstatements and/or omissions in its public disclosures[116](index=116&type=chunk) - The company is cooperating with investigations by the U.S. Department of Health and Human Services Office of Inspector General (OIG) and the Department of Justice (DOJ) into the compliance of certain consulting and service agreements with federal healthcare laws and regulations, for which **$11.2 million** has been accrued[117](index=117&type=chunk)[119](index=119&type=chunk) [Note 13. Segment Information](index=25&type=section&id=Note%2013.%20Segment%20Information) In the fourth quarter of 2024, the company combined its former Clinical Services and Advanced Diagnostics reportable segments into a single segment to streamline operations and enhance service offerings; the CEO, as Chief Operating Decision Maker (CODM), uses net loss from the consolidated statements of operations to monitor budget versus actual results, assess profitability, and allocate resources - The company combined its two primary reportable segments (Clinical Services and Advanced Diagnostics) into a single segment in the fourth quarter of 2024[120](index=120&type=chunk) - The Chief Executive Officer, as Chief Operating Decision Maker (CODM), uses net loss from the consolidated statements of operations to monitor budget versus actual results, assess profitability, and allocate resources[121](index=121&type=chunk) Segment Information (Thousands of Dollars) | Segment Information (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | 181,330 | 164,502 | 349,365 | 320,742 | | Operating loss | (47,628) | (21,941) | (75,453) | (52,508) | | Net loss | (45,092) | (18,642) | (71,015) | (45,703) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's detailed discussion and analysis of the company's financial condition and operating results, covering an overview, strategic focus, competitive strengths, seasonality, recent regulatory changes, and a comparison of financial performance for the three and six months ended June 30, 2025; the report indicates net revenue growth but expanded net loss due to increased impairment charges and operating costs, also discussing non-GAAP financial measures, liquidity, and capital resources [Introduction](index=26&type=section&id=Introduction) This introduction emphasizes that this discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and their notes, and cautions that forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from expectations - This discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and their notes[124](index=124&type=chunk) - The report contains forward-looking statements, involving risks and uncertainties that could cause actual results to differ materially from expectations[124](index=124&type=chunk) [Overview](index=26&type=section&id=Overview) NeoGenomics provides a broad range of oncology diagnostic testing and consulting services, including technical laboratory services and professional interpretations, operating a network of cancer testing laboratories in the U.S. and U.K.; the company's mission is to save lives by improving patient care, with a vision to be a global leader in cancer testing, information, and decision support - The company provides a broad range of oncology diagnostic testing and consulting services, including technical laboratory services and professional interpretations[125](index=125&type=chunk) - The company operates a network of cancer testing laboratories in the U.S. and U.K.[125](index=125&type=chunk) - The company offers various testing services, including cytogenetics, fluorescence in situ hybridization (FISH), flow cytometry, immunohistochemistry (IHC) and digital imaging, molecular testing, and morphological analysis[126](index=126&type=chunk) [Reportable Segments](index=27&type=section&id=Reportable%20Segments) In 2024, the company streamlined its operational approach by combining its former Clinical Services and Advanced Diagnostics segments into a single reportable segment, aiming to optimize operations and enhance service to diverse client groups, including community pathology and oncology practices, hospital pathology laboratories, reference laboratories, academic centers, and pharmaceutical companies - The company combined its former Clinical Services and Advanced Diagnostics segments into a single reportable segment in 2024[129](index=129&type=chunk) - This decision aims to streamline operations and enhance service to diverse client groups, including community pathology and oncology practices, hospital pathology laboratories, reference laboratories, academic centers, and pharmaceutical companies[129](index=129&type=chunk) [Revenue Streams](index=27&type=section&id=Revenue%20Streams) The company's single operating segment encompasses a broad range of services, including clinical cancer testing, interpretation and consulting, molecular and NGS testing, comprehensive technical and professional services, clinical trials and research, validation laboratory services, and oncology data solutions, all designed to support pathologists and oncologists and provide drug development support to pharmaceutical companies - The company's revenue streams include clinical cancer testing, interpretation and consulting services, molecular and NGS testing, comprehensive technical and professional services, clinical trials and research, validation laboratory services, and oncology data solutions[134](index=134&type=chunk) - The company offers Technical Component (TC) and Professional Component (PC) services, enabling clients to participate in the diagnostic process[130](index=130&type=chunk)[131](index=131&type=chunk) - The company is a leading provider of hematologic oncology diagnostic testing, including molecular and NGS testing, and a key provider of solid tumor NGS testing solutions[133](index=133&type=chunk) - The company enhanced its oncology liquid biopsy technology through the acquisition of Inivata, including RaDaR®, used to detect residual disease and recurrence in solid tumor patients[136](index=136&type=chunk) - Pharmaceutical development services support pharmaceutical companies' drug development programs from biomarker discovery to commercialization, including clinical trials, research, and companion diagnostic development[137](index=137&type=chunk) [Strategic Focus](index=28&type=section&id=Strategic%20Focus) By streamlining segments, the company aims to provide seamlessly integrated services and leverage its oncology and molecular diagnostics expertise to more effectively support clinical and pharmaceutical clients; strategic priorities for 2025 include profitably growing the core business, accelerating innovation, driving value creation, and elevating people and culture - By streamlining segments, the company aims to provide seamlessly integrated services and leverage its oncology and molecular diagnostics expertise to more effectively support clinical and pharmaceutical clients[139](index=139&type=chunk) - Key focus areas for 2025 include: profitably growing the core business (accelerating volume growth, accelerating oncologist partnerships, executing pharmaceutical client strategy), accelerating innovation (delivering product roadmap, successful and timely product launches, driving data solution productization and sales excellence), driving value creation (improving operating efficiency and gross margins, transforming the digital ecosystem, achieving positive cash flow from operations), and elevating people and culture (enhancing Neo culture, expanding scientific, medical, and product capabilities)[140](index=140&type=chunk)[141](index=141&type=chunk) [Competitive Strengths](index=28&type=section&id=Competitive%20Strengths) The company's competitive strengths include superior testing technology and instrumentation, laboratory information systems, client education programs, and domestic and international business presence; additionally, the company enhances its market competitiveness through continuous improvement in test result turnaround times, offering a comprehensive oncology test menu, and maintaining a dedicated national direct sales force - The company's competitive strengths include superior testing technology and instrumentation, laboratory information systems, client education programs, and domestic and international business presence[140](index=140&type=chunk) - The company continuously focuses on improving test result turnaround times to ensure physicians receive timely information for treatment initiation[142](index=142&type=chunk) - The company offers comprehensive technical and professional interpretation services, meeting client needs across various testing modalities[143](index=143&type=chunk) - The company maintains a dedicated national direct sales force, extensively trained in cancer genomic testing and consultative selling skills, to meet client needs[145](index=145&type=chunk) [Seasonality and Other Factors Affecting the Business](index=29&type=section&id=Seasonality%20and%20Other%20Factors%20Affecting%20the%20Business) The company's clinical testing volumes are subject to seasonality, typically declining during summer, year-end holidays, and severe weather; pharmaceutical development service volumes depend on contract terms and clinical trial patient enrollment rates; additionally, product launches, business investments, and annual resets of patient deductibles impact revenue, with higher revenue typically in the third and fourth quarters; changes in tariff policies may also affect supply chains and profitability - Clinical testing volumes typically experience a modest decline during summer, year-end holidays, and other major holidays, and are affected by extreme adverse weather conditions[146](index=146&type=chunk) - Pharmaceutical development service volumes are uncertain, influenced by contract terms and the pace of clinical trial patient enrollment[147](index=147&type=chunk) - Due to factors such as product launches, business investments, and annual resets of patient deductibles, the company's revenue is typically higher in the third and fourth quarters[148](index=148&type=chunk) - Changes in tariff policies could lead to supply chain challenges and customer demand uncertainty, impacting net sales and profitability[149](index=149&type=chunk) [Laboratory Developed Tests (LDTs)](index=30&type=section&id=Laboratory%20Developed%20Tests%20(LDTs)) The U.S. Food and Drug Administration (FDA) previously issued a final rule to phase out its general enforcement discretion over Laboratory Developed Tests (LDTs); however, on March 31, 2025, the U.S. District Court for the Eastern District of Texas vacated the FDA's final rule, ruling that the FDA exceeded its statutory authority, thus LDTs will continue to be regulated under the existing framework - The FDA previously issued a final rule to phase out its general enforcement discretion over LDTs[150](index=150&type=chunk) - On March 31, 2025, the U.S. District Court for the Eastern District of Texas vacated the FDA's final rule, ruling that the FDA exceeded its statutory authority[151](index=151&type=chunk) - LDTs will continue to be regulated under the existing framework[151](index=151&type=chunk) [One Big Beautiful Bill Act of 2025](index=30&type=section&id=One%20Big%20Beautiful%20Bill%20Act%20of%202025) On July 4, 2025, the U.S. enacted the 'One Big Beautiful Bill Act' (OBBBA), which made significant changes to federal tax law and other regulatory provisions; the company is evaluating the impact of OBBBA on its business, prospects, and financial statements - On July 4, 2025, the U.S. enacted the 'One Big Beautiful Bill Act' (OBBBA), which made significant changes to federal tax law and other regulatory provisions[152](index=152&type=chunk) - The company is evaluating the impact of OBBBA on its business, prospects, and financial statements[152](index=152&type=chunk) [Results of Operations for the Three and Six Months Ended June 30, 2025 as Compared to the Three and Six Months Ended June 30, 2024](index=30&type=section&id=Results%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20as%20Compared%20to%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202024) This section details the company's operating results for the three and six months ended June 30, 2025, compared to the prior year; despite net revenue growth, operating and net losses significantly expanded due to increased cost of revenue, general and administrative expenses, research and development expenses, sales and marketing expenses, and notably, impairment charges; interest income decreased, while interest expense declined due to the repayment of 2025 convertible notes [Revenue](index=30&type=section&id=Revenue) For the three and six months ended June 30, 2025, net revenue grew by **10.2%** and **8.9%**, respectively, primarily driven by increased testing volumes, higher average unit prices from strategic reimbursement initiatives, and revenue contributions from the Pathline acquisition, partially offset by a decline in non-clinical revenue and an unfavorable test mix Revenue (Thousands of Dollars) | Revenue (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :----------------------------- | :------------------------------- | :------------------------------- | :----- | :---------------- | | Revenue | 181,330 | 164,502 | 16,828 | 10.2 % | | Revenue (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :----------------------------- | :----------------------------- | :----------------------------- | :----- | :---------------- | | Revenue | 349,365 | 320,742 | 28,623 | 8.9 % | - Revenue growth primarily reflects increased testing volumes, higher average unit prices from strategic reimbursement initiatives, and revenue contributions from the Pathline acquisition[153](index=153&type=chunk) - Revenue growth was partially offset by a decline in non-clinical revenue due to macro clinical trial trends in the pharmaceutical industry and an unfavorable test mix[153](index=153&type=chunk) [Cost of Revenue and Gross Profit](index=31&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Profit) For the three and six months ended June 30, 2025, cost of revenue increased by **13.1%** and **8.8%**, respectively, primarily due to higher compensation and benefits, supplies, and postage and shipping costs; gross profit margin decreased by **1.5 percentage points** to **42.6%** for the three-month period and slightly increased by **0.1 percentage point** to **43.1%** for the six-month period, reflecting the trade-off between revenue growth and cost increases Cost of Revenue and Gross Profit (Thousands of Dollars) | Metric (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Percentage Change | | :---------------------------- | :------------------------------- | :------------------------------- | :---------------- | | Cost of revenue | 104,072 | 92,008 | 13.1 % | | Cost of revenue as a percentage of revenue | 57.4% | 55.9% | | | Gross profit | 77,258 | 72,494 | 6.6 % | | Gross profit margin | 42.6% | 44.1% | | | Metric (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Percentage Change | | :---------------------------- | :----------------------------- | :----------------------------- | :---------------- | | Cost of revenue | 198,861 | 182,779 | 8.8 % | | Cost of revenue as a percentage of revenue | 56.9% | 57.0% | | | Gross profit | 150,504 | 137,963 | 9.1 % | | Gross profit margin | 43.1% | 43.0% | | - The increase in cost of revenue was primarily due to higher compensation and benefits costs of **$7.3 million** (three months) and **$10.1 million** (six months), increased supplies expense of **$3.9 million** (three months) and **$5.7 million** (six months), and higher postage and shipping costs[157](index=157&type=chunk)[158](index=158&type=chunk) - Gross profit margin decreased by **1.5 percentage points** to **42.6%** for the three-month period and slightly increased by **0.1 percentage point** to **43.1%** for the six-month period[159](index=159&type=chunk) [General and Administrative Expenses](index=31&type=section&id=General%20and%20Administrative%20Expenses) For the three and six months ended June 30, 2025, general and administrative expenses increased by **13.3%** and **8.4%**, respectively, primarily driven by higher software and software development costs, compensation and benefits, and professional service fees, partially offset by reduced equipment maintenance and facility-related expenses General and Administrative Expenses (Thousands of Dollars) | General and Administrative Expenses (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :------------------------------------------------------- | :------------------------------- | :------------------------------- | :----- | :---------------- | | General and administrative expenses | 71,747 | 63,328 | 8,419 | 13.3 % | | As a percentage of revenue | 39.6 % | 38.5 % | | | | General and Administrative Expenses (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :------------------------------------------------------- | :----------------------------- | :----------------------------- | :----- | :---------------- | | General and administrative expenses | 139,954 | 129,125 | 10,829 | 8.4 % | | As a percentage of revenue | 40.1 % | 40.3 % | | | - For the three-month period, general and administrative expenses increased by **$8.4 million**, primarily due to a **$2.7 million** increase in software and software development costs, a **$2.4 million** increase in compensation and benefits costs, and a **$2.2 million** increase in professional service fees[161](index=161&type=chunk) - For the six-month period, general and administrative expenses increased by **$10.8 million**, primarily due to a **$6.9 million** increase in compensation and benefits costs, a **$4.2 million** increase in software and software development costs, and a **$1.7 million** increase in transaction costs[162](index=162&type=chunk) [Research and Development Expenses](index=31&type=section&id=Research%20and%20Development%20Expenses) For the three and six months ended June 30, 2025, research and development expenses increased by **14.4%** and **23.8%**, respectively, primarily due to reduced U.K. R&D tax credits, higher compensation and benefits costs, increased supplies expense, and higher professional service fees; the company anticipates continued increases in future R&D expenditures Research and Development Expenses (Thousands of Dollars) | Research and Development Expenses (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :----------------------------------------------------- | :------------------------------- | :------------------------------- | :----- | :---------------- | | Research and development expenses | 9,023 | 7,886 | 1,137 | 14.4 % | | As a percentage of revenue | 5.0 % | 4.8 % | | | | Research and Development Expenses (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :----------------------------------------------------- | :----------------------------- | :----------------------------- | :----- | :---------------- | | Research and development expenses | 19,204 | 15,506 | 3,698 | 23.8 % | | As a percentage of revenue | 5.5 % | 4.8 % | | | - For the three-month period, research and development expenses increased by **$1.1 million**, primarily due to a **$0.6 million** reduction in U.K. R&D tax credits, a **$0.4 million** increase in compensation and benefits costs, and a **$0.3 million** increase in supplies expense[164](index=164&type=chunk) - For the six-month period, research and development expenses increased by **$3.7 million**, primarily due to a **$1.2 million** increase in compensation and benefits costs, a **$1.0 million** reduction in U.K. R&D tax credits, a **$0.6 million** increase in supplies expense, and a **$0.5 million** increase in professional service fees[165](index=165&type=chunk) - The company anticipates increased future R&D expenditures to support innovation initiatives and new product launches[166](index=166&type=chunk) [Sales and Marketing Expenses](index=32&type=section&id=Sales%20and%20Marketing%20Expenses) For the three and six months ended June 30, 2025, sales and marketing expenses increased by **11.1%** and **11.6%**, respectively, primarily due to higher compensation and benefits costs from sales team expansion, increased professional service fees, and travel expenses; the company expects future sales commission expenses to rise with sales team expansion and new business growth Sales and Marketing Expenses (Thousands of Dollars) | Sales and Marketing Expenses (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :-------------------------------------------------- | :------------------------------- | :------------------------------- | :----- | :---------------- | | Sales and marketing expenses | 24,075 | 21,677 | 2,398 | 11.1 % | | As a percentage of revenue | 13.3 % | 13.2 % | | | | Sales and Marketing Expenses (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :-------------------------------------------------- | :----------------------------- | :----------------------------- | :----- | :---------------- | | Sales and marketing expenses | 46,758 | 41,898 | 4,860 | 11.6 % | | As a percentage of revenue | 13.4 % | 13.1 % | | | - For the three-month period, sales and marketing expenses increased by **$2.4 million**, primarily due to a **$1.7 million** increase in compensation and benefits costs from sales team expansion[167](index=167&type=chunk) - For the six-month period, sales and marketing expenses increased by **$4.9 million**, primarily due to a **$3.0 million** increase in compensation and benefits costs from sales team expansion[168](index=168&type=chunk) - The company anticipates increased future sales commission expenses with sales team expansion and new business growth[169](index=169&type=chunk) [Restructuring charges](index=32&type=section&id=Restructuring%20charges) For the three and six months ended June 30, 2025, the company incurred no restructuring charges, compared to **$1.5 million** and **$3.9 million** in the respective prior year periods, a decrease attributed to the completion of restructuring activities by December 31, 2024 Restructuring Charges (Thousands of Dollars) | Restructuring Charges (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :------------------------------------------- | :------------------------------- | :------------------------------- | :-------- | :---------------- | | Restructuring charges | — | 1,544 | (1,544) | (100.0)% | | Restructuring Charges (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :------------------------------------------- | :----------------------------- | :----------------------------- | :-------- | :---------------- | | Restructuring charges | — | 3,942 | (3,942) | (100.0)% | - Restructuring charges decreased by **100%** for both the three and six months in 2025, as restructuring activities were completed by December 31, 2024[171](index=171&type=chunk) [Impairment charges](index=32&type=section&id=Impairment%20charges) For the three and six months ended June 30, 2025, impairment charges increased by **$20.0 million** in both periods, compared to zero in the prior year, primarily comprising **$11.4 million** for InVisionFirst®-Lung intangible assets, **$8.2 million** for the disposal group held for sale, and **$0.4 million** for InVisionFirst®-Lung inventory write-offs Impairment Charges (Thousands of Dollars) | Impairment Charges (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :---------------------------------------- | :------------------------------- | :------------------------------- | :----- | :---------------- | | Impairment charges | 20,041 | — | 20,041 | Not Applicable | | Impairment Charges (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :---------------------------------------- | :----------------------------- | :----------------------------- | :----- | :---------------- | | Impairment charges | 20,041 | — | 20,041 | Not Applicable | - Impairment charges increased by **$20.0 million**, primarily comprising **$11.4 million** for InVisionFirst®-Lung intangible assets, **$8.2 million** for the disposal group held for sale, and **$0.4 million** for InVisionFirst®-Lung inventory write-offs[173](index=173&type=chunk) [Interest Income](index=32&type=section&id=Interest%20Income) For the three and six months ended June 30, 2025, interest income decreased by **50.7%** and **36.5%**, respectively, primarily due to a lower average cash balance invested and a reduced interest rate environment Interest Income (Thousands of Dollars) | Interest Income (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :------------------------------------- | :------------------------------- | :------------------------------- | :----- | :---------------- | | Interest income | (2,263) | (4,592) | 2,329 | (50.7)% | | Interest Income (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :------------------------------------- | :----------------------------- | :----------------------------- | :----- | :---------------- | | Interest income | (5,984) | (9,426) | 3,442 | (36.5)% | - The decrease in interest income was primarily due to a lower average cash balance invested and a reduced interest rate environment[176](index=176&type=chunk) [Interest Expense](index=33&type=section&id=Interest%20Expense) For the three and six months ended June 30, 2025, interest expense decreased by **44.0%** and **23.9%**, respectively, primarily attributable to the company's repayment of the 2025 convertible senior notes in the second quarter of 2025 Interest Expense (Thousands of Dollars) | Interest Expense (Thousands of Dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | Percentage Change | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----- | :---------------- | | Interest expense | 933 | 1,666 | (733) | (44.0)% | | Interest Expense (Thousands of Dollars) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | Percentage Change | | :-------------------------------------- | :----------------------------- | :----------------------------- | :----- | :---------------- | | Interest expense | 2,551 | 3,351 | (800) | (23.9)% | - The decrease in

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) NeoGenomics saw strong Q2 2025 revenue growth from clinical volumes, but net loss surged due to impairment charges, while strategically expanding [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) NeoGenomics saw Q2 2025 revenue rise 10% to $181 million, driven by clinical growth, but net loss increased significantly due to impairment charges Second Quarter 2025 Key Financial Highlights | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (%) | | :--------------------- | :------------------ | :------------------ | :--------- | | Consolidated Revenue | $181 | $164.5 | 10% | | Net Loss | $(45) | $(19) | 142% | | Adjusted EBITDA | $10.7 | $10.9 | -1.8% | - Consolidated gross profit increased by **7% to $77 million**, with an Adjusted Gross Profit Margin of **45%**[4](index=4&type=chunk) - Operating expenses rose by **32% to $125 million**, largely due to **$20 million in impairment charges** related to the planned sale of Trapelo and the InVisionFirst®-Lung intangible asset, as well as **$4.4 million in higher compensation and benefit costs**[4](index=4&type=chunk)[6](index=6&type=chunk) [Operational & Strategic Overview](index=1&type=section&id=Operational%20%26%20Strategic%20Overview) Clinical business grew strongly, particularly NGS, despite pharma revenue pressure and PanTracer™ launch delays, with future focus on R&D and partnerships - Clinical revenue increased by **16%** (**13% excluding Pathline**), driven by sequential improvement in Average Unit Price (AUP), record volumes, and **23% growth in NGS**[1](index=1&type=chunk)[2](index=2&type=chunk) - Challenges included continuing pressure in pharma revenue and a delay in the commercial launch of PanTracer™ Liquid Biopsy, impacting expected NGS revenue[2](index=2&type=chunk) - Future strategic initiatives include enhancing R&D for new therapy selection and next-gen MRD products, preparing for the commercial launch of PanTracer Liquid Biopsy, growing the sales team, increasing efficiencies, and pursuing partnerships[2](index=2&type=chunk) [Second-Quarter Financial Results](index=5&type=section&id=Second-Quarter%20Financial%20Results) Q2 2025 financial results show increased revenue but a higher net loss due to impairment charges, alongside reduced cash and convertible debt repayment [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased by June 30, 2025, mainly from reduced cash, while total liabilities also fell due to convertible senior notes repayment Key Balance Sheet Items (in thousands) | Item | June 30, 2025 (thousands) | December 31, 2024 (thousands) | | :------------------------ | :------------------------ | :---------------------------- | | Cash and cash equivalents | $154,723 | $367,012 | | Total current assets | $392,553 | $596,019 | | Total assets | $1,393,950 | $1,638,038 | | Total current liabilities | $100,120 | $301,241 | | Convertible senior notes | $341,095 | $340,335 | | Total liabilities | $539,910 | $735,699 | | Total stockholders' equity| $854,040 | $902,339 | - Assets held for sale increased to **$8,956 thousand** as of June 30, 2025, from zero at year-end 2024[19](index=19&type=chunk) - The current portion of convertible senior notes decreased from **$200,777 thousand** to zero, indicating a significant repayment[19](index=19&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net revenue increased 10.2% to $181.3 million, but higher operating expenses, mainly impairment charges, led to a significant net loss Q2 2025 vs Q2 2024 Statements of Operations (in thousands) | Metric | Q2 2025 (thousands) | Q2 2024 (thousands) | Change (%) | | :---------------------- | :------------------ | :------------------ | :--------- | | Net Revenue | $181,330 | $164,502 | 10.2% | | Cost of Revenue | $104,072 | $92,008 | 13.1% | | Gross Profit | $77,258 | $72,494 | 6.6% | | Total Operating Expenses| $124,886 | $94,435 | 32.2% | | Loss From Operations | $(47,628) | $(21,941) | 117.1% | | Net Loss | $(45,092) | $(18,642) | 142.0% | | Basic EPS | $(0.35) | $(0.15) | 133.3% | - Impairment charges of **$20,041 thousand** were recorded in Q2 2025, significantly contributing to the increase in operating expenses and net loss, compared to no such charges in Q2 2024[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) YTD June 30, 2025, experienced net cash outflows across all activities, primarily from convertible debt repayment, leading to a substantial cash decrease YTD June 30, 2025 vs 2024 Cash Flows (in thousands) | Cash Flow Activity | YTD June 30, 2025 (thousands) | YTD June 30, 2024 (thousands) | | :----------------------------- | :---------------------------- | :---------------------------- | | Net cash used in operating activities | $(4,997) | $(12,023) | | Net cash (used in) provided by investing activities | $(5,754) | $21,838 | | Net cash (used in) provided by financing activities | $(201,484) | $2,782 | | Net change in cash and cash equivalents | $(212,289) | $12,597 | | Cash and cash equivalents, end of period | $154,723 | $355,085 | - The significant cash outflow from financing activities was primarily driven by the repayment of **$201,250 thousand in convertible debt**[23](index=23&type=chunk) - Investing activities included **$11,060 thousand** from maturities of marketable securities and **$10,823 thousand** for purchases of property and equipment, along with **$5,991 thousand** for business acquisition (net of cash acquired)[23](index=23&type=chunk) [Business Developments](index=3&type=section&id=Business%20Developments) NeoGenomics expanded its Northeastern US presence and capabilities through the strategic acquisition of Pathline, LLC in April 2025 [Pathline, LLC Acquisition](index=3&type=section&id=Pathline%2C%20LLC%20Acquisition) NeoGenomics completed the acquisition of Pathline, LLC in April 2025, expanding its presence and capabilities in the Northeastern US - The acquisition of Pathline, LLC, a CLIA/CAP/NYS-certified laboratory, was completed on **April 4, 2025**[9](index=9&type=chunk) - The purchase price included an initial cash consideration of **$8.0 million** and contingent consideration of **$1.0 million**[9](index=9&type=chunk) - This acquisition aligns with NeoGenomics' strategic objective to expand its presence, capabilities, and offerings in the Northeastern United States[9](index=9&type=chunk) [Financial Guidance](index=3&type=section&id=Financial%20Guidance) NeoGenomics revised FY 2025 guidance, lowering revenue and increasing net loss projections, while maintaining a stable Adjusted EBITDA outlook [Full Year 2025 Guidance Update](index=3&type=section&id=Full%20Year%202025%20Guidance%20Update) NeoGenomics revised FY 2025 guidance, lowering consolidated revenue and increasing projected net loss, with a slight adjustment to Adjusted EBITDA Full Year 2025 Financial Guidance (in millions) | Metric | FY 2024 Actual (Millions) | Previously Revised FY 2025 Guidance (Low-High, Millions) | Current FY 2025 Guidance (Low-High, Millions) | YOY % Change from FY 2024 (Low-High) | | :----------------- | :------------------------ | :------------------------------------------------------- | :-------------------------------------------- | :----------------------------------- | | Consolidated revenue | $661 | $747 - $759 | $720 - $726 | 9% - 10% | | Net loss | $(79) | $(85) - $(77) | $(116) - $(108) | 47% - 37% | | Adjusted EBITDA | $40 | $55 - $58 | $41 - $44 | 3% - 10% | - The company's net loss guidance for FY 2025 was significantly increased, now projected to be between **$(116) million and $(108) million**, compared to the previous guidance of $(85) million to $(77) million[10](index=10&type=chunk) - Consolidated revenue guidance was slightly lowered to a range of **$720 million to $726 million**, from the previous range of $747 million to $759 million[10](index=10&type=chunk) [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) NeoGenomics uses non-GAAP measures and reconciliations for transparency into core operating performance, excluding non-recurring or non-operational items [Use and Definitions](index=8&type=section&id=Use%20and%20Definitions) Non-GAAP measures offer transparency into operating performance by excluding non-core or inconsistent items, assisting internal decisions and investor evaluation - Non-GAAP measures exclude certain income/expense items not directly attributable to core operating results or inconsistent in amounts and frequency, facilitating analysis of core test-level operating results[24](index=24&type=chunk) - Adjusted EBITDA is defined as net (loss) income before interest, tax, depreciation, amortization, stock-based compensation, and other specific non-operating items[25](index=25&type=chunk) - Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, and Adjusted Diluted EPS are also defined with specific adjustments to GAAP figures[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Detailed reconciliations from GAAP net loss to non-GAAP metrics are provided for Q2, YTD, and full-year guidance, highlighting adjustments like impairment and stock-based compensation [EBITDA and Adjusted EBITDA Reconciliation](index=9&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) Q2 2025 GAAP net loss increased significantly, leading to negative EBITDA, but Adjusted EBITDA remained stable after key adjustments Q2 2025 vs Q2 2024 EBITDA and Adjusted EBITDA (in thousands) | Metric | Q2 2025 (thousands) | Q2 2024 (thousands) | | :----------------- | :------------------ | :------------------ | | Net loss (GAAP) | $(45,092) | $(18,642) | | EBITDA (non-GAAP) | $(29,882) | $(3,836) | | Adjusted EBITDA (non-GAAP) | $10,675 | $10,869 | - Key adjustments for Q2 2025 included **$20,041 thousand in impairment charges** and **$12,215 thousand in stock-based compensation expense**[29](index=29&type=chunk) [Gross Profit and Adjusted Gross Profit Margin Reconciliation](index=10&type=section&id=Gross%20Profit%20and%20Adjusted%20Gross%20Profit%20Margin%20Reconciliation) GAAP gross profit margin slightly decreased, but Adjusted Gross Profit Margin, excluding amortization and stock-based compensation, showed stable Q2 2025 performance Q2 2025 vs Q2 2024 Gross Profit and Margin (in thousands) | Metric | Q2 2025 (thousands) | Q2 2024 (thousands) | Change (%) | | :------------------------- | :------------------ | :------------------ | :--------- | | Gross Profit (GAAP) | $77,258 | $72,494 | 6.6% | | Adjusted Gross Profit (non-GAAP) | $82,372 | $77,761 | 5.9% | | Gross Profit Margin (GAAP) | 42.6% | 44.1% | -1.5 pp | | Adjusted Gross Profit Margin (non-GAAP) | 45.4% | 47.3% | -1.9 pp | - Adjustments to cost of revenue for Q2 2025 included **$4.8 million of amortization of acquired intangible assets** and **$0.3 million of stock-based compensation**[33](index=33&type=chunk) [Net Loss and EPS to Adjusted Net Loss and Adjusted EPS Reconciliation](index=11&type=section&id=Net%20Loss%20and%20EPS%20to%20Adjusted%20Net%20Loss%20and%20Adjusted%20EPS%20Reconciliation) Q2 2025 reconciliation highlights a significant difference between GAAP and Adjusted net loss/EPS, mainly from excluding impairment, stock-based compensation, and amortization Q2 2025 vs Q2 2024 Net Loss and EPS Reconciliation (in thousands, except per share) | Metric | Q2 2025 (thousands) | Q2 2024 (thousands) | | :------------------------- | :------------------ | :------------------ | | Net loss (GAAP) | $(45,092) | $(18,642) | | Adjusted net income (non-GAAP) | $3,589 | $4,424 | | Diluted EPS (GAAP) | $(0.35) | $(0.15) | | Adjusted diluted EPS (non-GAAP) | $0.03 | $0.03 | - Significant adjustments for Q2 2025 included **$20,041 thousand for impairment charges** and **$12,215 thousand for stock-based compensation expense**[36](index=36&type=chunk) [Financial Guidance Reconciliation](index=13&type=section&id=Financial%20Guidance%20Reconciliation) FY 2025 guidance reconciliation shows the substantial impact of non-GAAP adjustments, like amortization and stock-based compensation, in converting GAAP net loss to positive Adjusted metrics FY 2025 Financial Guidance Reconciliation (in thousands, except per share) | Metric | Low Range (thousands) | High Range (thousands) | | :------------------------- | :-------------------- | :--------------------- | | Net loss (GAAP) | $(116,000) | $(108,000) | | Adjusted net income (non-GAAP) | $10,000 | $15,000 | | Adjusted EBITDA (non-GAAP) | $41,000 | $44,000 | | Net loss per diluted share (GAAP) | $(0.91) | $(0.84) | | Adjusted diluted EPS (non-GAAP) | $0.08 | $0.12 | - Key adjustments for FY 2025 guidance include **$32,000 thousand for amortization of intangibles**, **$43,000-$46,000 thousand for stock-based compensation**, and **$48,000 thousand for other one-time expenses**[39](index=39&type=chunk) [Supplemental Information](index=14&type=section&id=Supplemental%20Information) This section provides additional details on clinical test volumes and revenue, highlighting growth in both tests performed and average revenue per test [Clinical Tests Performed and Revenue](index=14&type=section&id=Clinical%20Tests%20Performed%20and%20Revenue) NeoGenomics reported strong Q2 2025 growth in clinical tests and average revenue per test, indicating increased volume and higher-value testing Q2 2025 Clinical Tests Performed and Revenue | Metric | Q2 2025 | Q2 2024 | Change (%) | | :----------------------------------- | :-------- | :-------- | :--------- | | Clinical excluding Pathline: Number of tests performed | 343,005 | 311,670 | 10.1% | | Clinical excluding Pathline: Average revenue/test | $465 | $454 | 2.4% | | Clinical including Pathline: Number of tests performed | 356,630 | 311,670 | 14.4% | | Clinical including Pathline: Average revenue/test | $461 | $454 | 1.5% | - The average revenue per clinical test increased by **2.4% (excluding Pathline)** and **1.5% (including Pathline)** in Q2 2025, reflecting higher value tests, including NGS, and strategic reimbursement initiatives[3](index=3&type=chunk)[41](index=41&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides an overview of NeoGenomics, includes forward-looking statement disclaimers, and offers contact details for investor and media relations [About NeoGenomics, Inc.](index=3&type=section&id=About%20NeoGenomics%2C%20Inc.) NeoGenomics is a premier cancer diagnostics company specializing in genetics testing and information services, offering a comprehensive oncology-focused menu - NeoGenomics is a premier cancer diagnostics company specializing in cancer genetics testing and information services[12](index=12&type=chunk) - The company offers one of the most comprehensive oncology-focused testing menus, serving oncologists, pathologists, hospital systems, academic centers, and pharmaceutical firms[12](index=12&type=chunk) - NeoGenomics operates CAP-accredited and CLIA-certified laboratories throughout the US and a CAP-accredited full-service laboratory in Cambridge, United Kingdom[12](index=12&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section provides a standard disclaimer for forward-looking statements, cautioning investors about inherent risks that could cause actual results to differ from projections - Forward-looking statements address matters such as 2025 financial guidance, seasonality impacts, and long-range strategic objectives[15](index=15&type=chunk) - These statements are subject to risks and uncertainties, including the company's ability to implement initiatives, gain customers, offer new tests, integrate acquisitions, manage seasonality, and execute strategic priorities[15](index=15&type=chunk) - Investors are cautioned not to place undue reliance on these statements and are encouraged to review the company's SEC filings for a discussion of risks[16](index=16&type=chunk) [Investor Relations & Media](index=3&type=section&id=Investor%20Relations%20%26%20Media) This section provides contact information for investor relations and media inquiries, plus details for accessing the Q2 2025 results webcast and conference call - A webcast and conference call to discuss Q2 2025 results was scheduled for **Tuesday, July 29, 2025, at 8:30 a.m. Eastern Time**[11](index=11&type=chunk) - Investor contact information is provided for Kendra Webster at InvestorRelations@neogenomics.com[17](index=17&type=chunk) - Media contact information is provided for Andrea Sampson at asampson@sampsonprgroup.com[17](index=17&type=chunk)

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices involving Zeo Energy Corp and its officers or directors [1] Group 1: Company Compliance Issues - On May 29, 2025, Zeo announced it received a notice from Nasdaq regarding non-compliance with periodic filing requirements due to the failure to file its Quarterly Report on Form 10-Q by the due date of May 15, 2025 [2] - Following this announcement, Zeo's stock price decreased by $0.34 per share, representing a decline of 9.91%, closing at $3.09 per share on May 30, 2025 [2] Group 2: Legal Context - Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of fighting for victims of securities fraud and corporate misconduct [3]

Core Insights - NEO Battery Materials Ltd. has achieved significant advancements with its P-300N silicon battery, surpassing long-term capacity testing metrics with over 90% capacity retention for 300 cycles, exceeding the target of 80% [2][10] - The company has appointed Dr. Jun Sik Jeoung as Senior Vice President to lead large-scale battery testing and production expansion, leveraging his extensive experience in the battery industry [3][10] - The results from the P-300N testing enable NEO to move forward with large-cell format testing and the design of single-layer pouch cells, which will undergo long-term performance tests [4][10] Company Developments - NEO is actively preparing for multi-layer cell testing and is in discussions with battery prototypers and manufacturers in South Korea, the U.S., and Germany for outsourcing manufacturing [5][10] - The company has secured post-treatment equipment and is nearing completion of installation at its R&D Scale-Up Centre, which will enhance production capacity and quality [6][10] - The 2025 Annual General and Special Meeting resulted in all resolutions being approved by shareholders, including the appointment of MNP LLP as auditor and setting the number of directors at five [7][9][11] Technical Achievements - The P-300N battery prototype is recognized as one of the most stable silicon battery materials in the global supply chain, utilizing metallurgical silicon (MG-Si), which is the lowest-cost silicon input for battery-grade applications [2][14][10] - The engineering team has initiated the design and architecture of single-layer pouch cells, which will optimize interactions between P-300N, graphite anodes, and various cathode materials [4][10] - The company aims to fulfill elevated requests from global downstream partners by adding a key manufacturing unit to expand overall capacity [6][10]

Summary of NeoGenomics Conference Call Company Overview - **Company**: NeoGenomics (NEO) - **Industry**: Life Sciences and Oncology Diagnostics Key Points and Arguments Leadership Insights - The new CEO, Tony, has observed strengths in NeoGenomics that were previously underestimated, particularly in the hospital community and hematology [1][2] - The company has a strong focus on therapy selection, with 22% of revenue driven by recent product launches [2] Financial Guidance - NeoGenomics initially guided for 11% to 13% revenue growth for 2025, which includes contributions from the Pathline acquisition [7][8] - The Pathline acquisition is expected to contribute $12 million to $14 million in revenue for the year [27] - Revenue growth in 2024 was 12%, with 16% growth in 2023, and clinical business grew by 15% in 2024 [9] Sales Force Expansion - The company added 30 sales representatives, a 25% increase, focusing on community oncology [10] - It typically takes 6 to 9 months for new sales reps to reach full productivity [14] - The sales strategy includes targeting high-potential physicians based on their prescription writing [17] Product Launches and Pricing - New product launches, including PANTRACER liquid, are expected to drive growth in the second half of the year [11][22] - A direct client bill price increase was implemented in Q1, expected to benefit margins throughout the year [25] Operational Efficiency - NeoGenomics is focused on improving turnaround times and operational execution to enhance customer retention and acquisition [19] - The company is investing in automation and has a project underway to consolidate multiple lab information systems into one [58][62] Partnerships and Market Positioning - The partnership with Adaptive Biotechnologies aims to enhance the workflow for physicians by allowing combined requisitioning of tests [35][38] - The company is also exploring opportunities in the MRD (Minimal Residual Disease) market, focusing on sensitivity and tissue-informed testing [41][46] Market Dynamics - The MRD market is currently under-penetrated, with significant opportunities in community settings [46] - Guidelines for circulating tumor DNA testing are anticipated, which could drive broader adoption [51][52] Capital Deployment Strategy - NeoGenomics plans to balance investments in growth with potential stock buybacks and debt repayment, aiming for positive free cash flow by 2026 [64][65] Additional Important Insights - The company is leveraging its strengths in community oncology and is optimistic about future partnerships and licensing opportunities [34] - The integration of Pathline is ongoing, with expectations for economies of scale in NGS (Next Generation Sequencing) testing [28] - The focus on operational efficiencies through robotics and AI in lab processes is seen as a key growth driver over the next few years [62][63]

Summary of NeoGenomics (NEO) FY Conference Call - June 03, 2025 Company Overview - **Company**: NeoGenomics - **CEO**: Tony Zuck, who joined a few months prior to the conference but has been associated with the company for two years as a board member [4][3] Industry Insights - **Cancer Statistics**: One in two men and one in three women will face cancer in their lifetime, highlighting the significant market for cancer diagnostics [7] - **Patient Treatment Preferences**: 80% of cancer patients prefer to be treated in their local community, which informs NeoGenomics' strategy to focus on community hospitals [9] Strategic Positioning - **Market Position**: NeoGenomics operates between large clinical reference labs and Oncotechs, with over 500 test offerings, focusing on oncology [10][12] - **Market Size**: The cancer diagnostic testing market is approximately $12 billion, with a penetration rate of 70%. The therapy selection market is about $13 billion with a 35% penetration rate, and the MRD market is estimated at $30 billion with only 5-8% penetration [13][15] Growth Strategy - **Community Focus**: The company aims to provide the same level of cancer care in community settings as found in top hospitals [10] - **Revenue Growth**: NeoGenomics has achieved 8% year-on-year growth in volume and anticipates continued growth driven by new product offerings and market expansion [34][44] - **Sales Force Expansion**: The sales force has been expanded to 140 representatives, focusing on oncology practices [35] Product Development - **New Product Launches**: The PANTRACER product suite, including liquid biopsy and tissue tests, is set to launch, enhancing the company's oncology portfolio [39][40] - **Research and Development**: Emphasis on next-generation precision diagnostic solutions, particularly in MRD and therapy selection [27][28] Financial Performance - **Revenue Growth**: Revenue increased from approximately $484 million in 2021 to over $660 million in 2024, with a positive EBITDA of $40 million [42][43] - **Future Projections**: Expected revenue growth of 13% to 15% for the current year, with adjusted EBITDA growth of 38% to 45% [44] Strategic Acquisitions - **Pathline Acquisition**: Acquired Pathline to strengthen the company's presence in the Northeast, enhancing service capabilities and turnaround times [37][46] Conclusion - **Optimistic Outlook**: The company is positioned for sustainable growth through its community-focused strategy, innovative product offerings, and operational efficiencies [48][49]

Core Viewpoint - Momentum investing strategies focus on stocks with price increases, aiming to identify targets for potential upside while considering various timeframes [1] Group 1: Oddity Tech - Oddity Tech Ltd. is a tech company in the beauty and wellness sector, recently achieving a share price of $64.02, with a 52-week range of $30.34 to $65.90 and a P/E ratio of 38.85 [2][3] - The company reported a 70% increase in share price over the last month and a 53% year-to-date increase, surpassing earnings expectations by six cents and achieving a 27% year-over-year revenue growth [3][4] - Oddity's IL MAKIAGE brand is a key driver, with a goal of reaching $1 billion in revenue by 2028, while expanding into European markets despite heavy exposure to the U.S. market [5] Group 2: NeoGenomics - NeoGenomics Inc., a cancer and cytogenetics testing service provider, has a current share price of $8.08, with a 52-week range of $6.08 to $19.12 and a price target suggesting over 85% upside potential [6][7] - The company experienced a 22% share price increase from April 30 to May 5, following a period of decline due to a disappointing earnings report [7][8] - NeoGenomics raised its full-year 2025 guidance and completed the acquisition of Pathline, which is expected to enhance its geographical reach and service portfolio [8] Group 3: Comfort Systems USA - Comfort Systems USA Inc. is a mechanical and electrical services provider with a current share price of $433.79, a 52-week range of $272.93 to $553.09, and a unanimous Buy rating from analysts [9][10] - The company has seen a 40% increase in share price over the last month, driven by a significant backlog growth of nearly $1 billion due to the CHIPS Act and data center investments [10][11] - Anticipated revenue growth for 2025 is expected to be in double digits, potentially benefiting from U.S. manufacturing restoration efforts [11]

Operational Structure and Services - As of March 31, 2025, NeoGenomics operates CAP accredited and CLIA certified laboratories in multiple locations, including Fort Myers, Florida, and Cambridge, UK[107]. - The company reported a comprehensive range of oncology diagnostic testing services, including cytogenetics, FISH, flow cytometry, IHC, and molecular testing, which are essential for diagnosing various cancers[106][109]. - NeoGenomics simplified its operational structure in 2024 by consolidating Clinical Services and Advanced Diagnostics into a single segment to enhance service offerings[110]. - The company aims to accelerate volume growth through traditional clinical and NGS modalities, targeting oncologists in the community and executing a pharmaceutical client strategy[122]. - NeoGenomics focuses on improving turnaround times for test results, which is crucial for timely patient treatment and drives additional testing requests[123]. - NeoGenomics offers a comprehensive oncology-focused test menu, including molecular and NGS testing, to meet diverse client needs[124][125]. - The company has a national direct sales force organized into nine regions in the U.S., focusing on value-based care solutions and client education[126]. Financial Performance - Consolidated revenue for the three months ended March 31, 2025, was $168.0 million, an increase of $11.8 million or 7.5% compared to $156.2 million in 2024[133]. - Cost of revenue for the three months ended March 31, 2025, was $94.8 million, representing a 4.4% increase from $90.8 million in 2024, with gross profit margin improving to 43.6% from 41.9%[135][136]. - Research and development expenses rose to $10.2 million for the three months ended March 31, 2025, a 33.6% increase from $7.6 million in 2024, accounting for 6.1% of revenue[140]. - General and administrative expenses increased by $2.4 million to $68.2 million, representing 40.6% of revenue, compared to 42.1% in 2024[138]. - Sales and marketing expenses increased by $2.5 million to $22.7 million, accounting for 13.5% of revenue, up from 12.9% in 2024[142]. - Interest income decreased to $3.7 million for the three months ended March 31, 2025, down 23.0% from $4.8 million in 2024[146]. - Net loss for the three months ended March 31, 2025, was $25.9 million, an improvement from a net loss of $27.1 million in 2024, with basic net loss per share of $(0.20) compared to $(0.21) in 2024[150]. - Adjusted EBITDA for the three months ended March 31, 2025, was $7.1 million, significantly higher than $3.5 million in the same period of 2024, reflecting a positive operational trend[154]. Cash Flow and Liquidity - Cash used in operating activities decreased to $25.3 million in Q1 2025 from $25.9 million in Q1 2024, driven by a $7.8 million improvement in gross profit[159]. - The company had $346.2 million in unrestricted cash and cash equivalents as of March 31, 2025, indicating strong liquidity to support operational needs[162]. - Capital expenditures for the year ending December 31, 2025, are anticipated to be between $30.0 million and $35.0 million, with $4.5 million spent in Q1 2025[163]. - Cash provided by investing activities was $3.6 million in Q1 2025, a decrease from $14.5 million in Q1 2024, primarily due to lower proceeds from marketable securities[160]. - Cash provided by financing activities increased to $0.9 million in Q1 2025 from $0.8 million in Q1 2024, mainly due to net issuance of common stock[161]. - Working capital at the end of Q1 2025 was $294.2 million, down from $497.2 million in Q1 2024, reflecting changes in current assets and liabilities[158]. Strategic Initiatives and Market Conditions - The acquisition of Inivata in June 2021 enhanced NeoGenomics' capabilities in oncology liquid biopsy technology, which is anticipated to drive future growth[117]. - Seasonal factors, such as summer vacations and extreme weather, can impact clinical testing volume, while pharmaceutical development services are influenced by contract terms and patient enrollment rates[127][128]. - The company anticipates an increase in research and development expenditures as it continues to invest in innovation projects and new tests[141]. - The FDA's final rule on Laboratory Developed Tests (LDTs) was vacated, allowing LDTs to continue under existing regulatory frameworks[132]. Restructuring and Risk Management - Restructuring charges were eliminated in the three months ended March 31, 2025, compared to $2.4 million in 2024, due to the completion of restructuring activities[144][145]. - The company does not hedge foreign currency exchange risks, although it operates in the UK, exposing it to fluctuations in British Pounds against the U.S. dollar[169]. - The company has no economic interest rate exposure related to its convertible notes, which have fixed annual interest rates of 1.25% and 0.25%[167].

Financial Data and Key Metrics Changes - The company reported revenues of $168 million for Q1 2025, an increase of 8% compared to the prior year, aligning with the previous guidance of 8% to 10% growth [24][29] - Adjusted EBITDA improved by 102% year-over-year to $7 million, marking the seventh consecutive quarter of positive adjusted EBITDA [24][10] - Total clinical revenue increased by $15 million or 11.3% in the quarter, while non-clinical revenue declined by $3.4 million or 15.8% [25][26] Business Line Data and Key Metrics Changes - Clinical testing volumes grew by 8% year-over-year, with NGS (Next Generation Sequencing) revenue growth of 18% [11][24] - Five new NGS products launched accounted for 22% of total clinical revenue in Q1 [11][12] - The company expects to achieve 25% annual growth in NGS, supported by an expanded sales force and upcoming product launches [12][13] Market Data and Key Metrics Changes - The NGS market is projected to grow at an annual rate of 10% to 15%, with the company aiming to grow above this rate [11] - The non-clinical business, which includes pharma, is expected to decline this year due to macroeconomic factors affecting R&D spending [15][27] Company Strategy and Development Direction - The company plans to focus on innovation through R&D, business development, and commercialization of new products to enhance patient care options [6][7] - The acquisition of Pathline is expected to accelerate growth and establish a local presence in the Northeast, contributing $12 million to $14 million in revenue for 2025 [8][29] - The company aims to leverage its strong position in community oncology and enhance its test offerings to drive incremental business [7][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's strong performance and the potential for growth in the community oncology market [36][40] - There are anticipated headwinds in the pharma sector, but clinical revenue growth is expected to offset these challenges [27][45] - The company is focused on integrating Pathline and optimizing operations to realize synergies in the second half of the year [29][30] Other Important Information - The company ended Q1 with cash and marketable securities of $358 million, a decrease of 7% year-over-year, and expects to maintain sufficient liquidity for investments [28][29] - The company is committed to increasing R&D investments to drive future product innovation [27][31] Q&A Session Summary Question: Can you discuss the last thirty days at the helm and any areas needing attention? - Management confirmed strong performance and positive interactions with the team, noting no surprises but areas for continued focus [36][39] Question: Can you unpack the NGS products driving clinical revenue? - Several new products contribute significantly, with a focus on community oncology, and investments in sales resources align with product launches [40][42] Question: What are the expectations for the pharma business this year? - The pharma segment is expected to decline similarly to last year, but clinical revenue growth will help offset this [45][46] Question: How will the Pathline acquisition impact revenue and integration? - Pathline is expected to contribute to revenue growth in the future, with integration efforts ongoing [29][30] Question: What is the timeline for the next-gen MRD product? - The timeline for the next-gen MRD product is set for 2026, with opportunities for acceleration through partnerships [66][67] Question: How will the sales force maturity impact revenue? - The sales force is expected to reach full productivity in 6 to 9 months, with leverage anticipated in the second half of the year [88][91]

Financial Performance - Revenue increased by 8% to $168 million in 1Q 2025[31, 35] - Clinical NGS revenue grew by 18%[17, 19] - Adjusted Gross Profit increased by 11% to $79 million[31] - Adjusted EBITDA improved by 102% to $7 million[15, 31] - Adjusted Gross Margin increased to 47%, a 146 bps improvement[17, 32] Operational Highlights - Clinical volume increased by 8% year-over-year, reaching 326,000 units[12, 31] - The company announced the acquisition of Pathline to strengthen its commercial presence in the Northeast[17, 25] - Clinical revenue per test improved by 3% due to mix and pricing[13, 35] Strategic Initiatives - The company submitted PanTracer LBx to MolDx[17, 42] - The company is expanding its salesforce up to 140 representatives[23] Financial Guidance - The company revised its full-year 2025 revenue guidance to $747-$759 million, representing a 13-15% year-over-year growth[38] - The company reiterated its full-year adjusted EBITDA guidance of $55-$58 million, representing a 38-45% year-over-year growth[38]